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How COVID-19 created the perfect opportunity for Aussies to get financially savvy

  • August 10 2021
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How COVID-19 created the perfect opportunity for Aussies to get financially savvy

By Cameron Micallef
August 10 2021

The COVID-19 pandemic and the economic issues associated with the downturn have seen Australians take a serious look into their financial future, new research has revealed.

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How COVID-19 created the perfect opportunity for Aussies to get financially savvy

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  • August 10 2021
  • Share

The COVID-19 pandemic and the economic issues associated with the downturn have seen Australians take a serious look into their financial future, new research has revealed.

budgeting

As many as 84 per cent of Australians believe COVID-19 was an opportunity to assess their financial goals, while a further 40 per cent admitted to using their time in lockdown to create new habits to help achieve financial outcomes, new survey data released by ME Bank showed.

Blessed with additional time, Aussies saw it as either a chance to undertake a side hustle, work towards saving for an emergency fund or a big ticket such as a holiday, a car or a renovation on the family home.

ME’s money expert, Matthew Read, said many Australians were offered the opportunity to take a good, hard look at how they were using their money since the onset of the pandemic.

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Those that didn’t should do so now, Mr Read said.

“When people stopped to review their financial goals, they also looked at what they needed to do to achieve them,” he explained.

According to ME figures, the new financial habits that 40 per cent of Australians said they developed during COVID lockdowns that are now helping them achieve their financial goals, include spending less on items, budgeting, tracking expenses, paying bills on time, planning purchases, spending less on necessities and saving loose change.

“It’s no surprise reduced spending on expensive habits, paying down mortgages and setting up a budget or savings plan were the main sources of change. It might be fair to say COVID lockdowns have, and may continue to, make many Australians more financially savvy,” said Mr Read.

Aside from additional time, Mr Read pointed out that the lockdown pause also gave almost half of Australians the time to pursue other potential career, business and lifestyle paths.

While some have used the time wisely, not everyone found the COVID lockdowns a positive pause that stimulated growth in their financial awareness.

In fact, about a fifth of Australians developed habits during the pandemic that have ‘hindered or are hindering them reaching their financial goals’.

These habits included online shopping, shopping when bored, indulging in alcohol and consumables and impulse purchasing.

“We all know the lockdowns aren’t easy, and we’re once again being tested, but it’s great to see so many Australians working towards a healthy financial future,” Mr Read concluded.

How COVID-19 created the perfect opportunity for Aussies to get financially savvy
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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